Fleishman Hillard

In the 58-year history of Fleishman-Hillard, we have never experienced allegations remotely like those facing us today in Los Angeles. While we understand and accept media scrutiny, we believe the ongoing coverage suggests our work added little or no value to the Los Angeles Department of Water and Power or its ratepayers. We disagree. Outstanding work was done by the DWP and Fleishman-Hillard to address operational, educational and marketplace challenges. For example, our public relations firm assisted in a marketing program that helped DWP secure 22 of its largest electric customers to long-term contracts, representing nearly $1 billion in annual revenue through the life of the contracts.

A public relations executive convicted of fraud for overbilling the city of Los Angeles is seeking a retrial, citing newly discovered evidence that he says shows the star witness against him had an undisclosed motive to lie. The executive, John Stodder, was sentenced to 15 months in prison in 2006 for overcharging the city's Department of Water and Power for work done by his firm, Fleishman-Hillard. He was convicted of conspiring with his boss, Douglas Dowie. Both men are free on appeal.

Former public relations executive Douglas R. Dowie, convicted in May of bilking the city out of $6 million, has sued to try to force former employer Fleishman-Hillard Inc. to pay his legal bills. Dowie alleges the firm withdrew a promise to pay his $3 million in legal fees after he was indicted, according to the suit, filed in Los Angeles County Superior Court.

Former public relations and newspaper executive Douglas R. Dowie won a reprieve from prison this week, when the 9th U.S. Circuit Court of Appeals ordered him free on bond while he appeals his conviction for defrauding city taxpayers. The two-judge panel noted in a ruling Wednesday that Dowie and co-defendant John Stodder Jr.'

A former public relations executive whose firm is accused of overbilling the city of Los Angeles sued his onetime employer Tuesday, saying he was made a scapegoat and fired without cause. Douglas R. Dowie, who was general manager of the L.A. office for Fleishman-Hillard, alleged in the lawsuit that the company's own investigation found he did not engage in misconduct.

Nearly 10 months after freezing payment on $533,000 in bills from Fleishman-Hillard, Los Angeles' city controller warned the public relations firm Tuesday that she would ask the City Council to reject the invoices unless the company justified the costs within 10 days. Controller Laura Chick notified the company in March that she would withhold payment on bills for October, November and December 2003 until she received more documentation.

RATINGS GAME: Leaders of Congress can add one more burden to their current woes: a sharp drop in their job ratings by senior congressional aides. Senate Majority Leader George J. Mitchell of Maine and Senate Minority Leader Bob Dole of Kansas tied in the poll, with 42% of the staffers rating each of them excellent or very good. But that figure represented a big drop from their 1991 numbers, when 67% rated Mitchell an excellent or very good leader and 59% gave Dole that rating.

The Times' editorial suggests that Mayor James K. Hahn has plenty of reasons to fire [DWP acting General Manager] Frank Salas ("Dept. of Waste and Power," July 16). When is The Times going to get real? Your news articles are full of innuendoes that the loosie-goosie contract with Fleishman-Hillard was nothing more than a payback for its campaign contributions. Because of the connections between the mayor and Fleishman-Hillard, it would have been career suicide for Salas to have tried to be a tough administrator on that contract.

Re "PR Firm Routinely Overbilled DWP, Former Employees Say," July 15: Voters may soon be asked to approve an increase in the sales tax to provide more police to fight crime, but some misdeeds can be uncovered only through research. Thank you to The Times, City Controller Laura Chick and those people who spoke up about the questionable billing practices of Fleishman-Hillard Inc. as the public relations firm for the Department of Water and Power. Folks sitting in high-rise offices wearing designer clothes seem to be stealing more from the public than guys on the streets with guns.

Deputy Mayor Matt Middlebrook, who managed Mayor James K. Hahn's election campaign and played a key role in shaping the mayor's agenda, announced Wednesday that he was resigning to join a public relations firm. Middlebrook will be a senior vice president for Fleishman Hillard, a firm with close ties to Hahn, and head up its San Francisco office. He said the job offered new opportunities and a chance to return to the Bay Area, where he grew up.

Former public relations executive Douglas R. Dowie, convicted in May of bilking the city out of $6 million, has sued to try to force former employer Fleishman-Hillard Inc. to pay his legal bills. Dowie alleges the firm withdrew a promise to pay his $3 million in legal fees after he was indicted, according to the suit, filed in Los Angeles County Superior Court.

A public relations firm has agreed to pay $1 million to the Los Angeles Department of Water and Power to settle claims that the company couldn't substantiate charges and overbilled the agency for consulting services, officials announced Wednesday. The settlement allows the Lee Andrews Group to repay the money over six years and resolves "claims" against the firm that were raised in audits by the DWP and City Controller Laura Chick. The company is a former subcontractor to Fleishman-Hillard Inc.

Douglas Dowie, the former public relations executive whose criminal case helped tar the administration of former Los Angeles Mayor James K. Hahn, owes his lawyers almost $3 million. They were in court Monday, trying one more time to save Dowie from a stiff prison term next month and maybe shake loose payment for services rendered too.

The scandal rocked Los Angeles City Hall, spurred ethics reform and helped persuade voters to elect Antonio Villaraigosa mayor last year. The case of alleged fraudulent billing of city government by Fleishman-Hillard Inc. bloodied one of the nation's premier public relations firms, costing it millions of dollars. The principal players include political figures from the administrations of mayors Tom Bradley, Richard Riordan and James K.

The man who first confronted public relations giant Fleishman-Hillard Inc. about allegedly bilking clients testified that he falsified billings at the direction of superiors who are now on trial for criminal conspiracy and fraud. Fred Muir, a former Times reporter and editor, testified that he quit his job at the corporation's Los Angeles office in protest over the alleged fraud, for which the company has refunded the city of Los Angeles more than $6 million.

A second worker has identified Fleishman-Hillard Inc. executive John Stodder as the man who issued instructions to falsify public relations billings to the city, a federal jury was told Friday. Candice Campbell, who worked in the international public relations firm's Los Angeles office for 10 years, testified Friday against Stodder and his former boss, Douglas Dowie, who are on trial for conspiracy and fraud.

It would have taken a solid 10. Los Angeles City Councilman Richard Alarcon had been trying to muster 10 council votes in an effort to cancel a contract that will provide $3 million for outside public relations work for the DWP. Alarcon and Councilwoman Jackie Goldberg had objected to the contract, saying that the timing was bad because the DWP is amid layoffs and voluntary buyouts. But a last-minute agreement Tuesday afternoon between the DWP and the Architects and Engineers Assn.

It would have taken a solid 10. Los Angeles City Councilman Richard Alarcon had been trying to muster 10 council votes in an effort to cancel a contract that will provide $3 million for outside public relations work for the DWP. Alarcon and Councilwoman Jackie Goldberg had objected to the contract, saying that the timing was bad because the DWP is amid layoffs and voluntary buyouts. But a last-minute agreement Tuesday afternoon between the DWP and the Architects and Engineers Assn.

A former Fleishman-Hillard employee who testified she padded bills to the city on orders from her former bosses admitted Wednesday to making misstatements to investigators, but held firm to her basic story of fraud by the international public relations firm. Monique Moret, testifying under a grant of immunity, was pummeled over five hours of cross-examination by a lawyer for John Stodder, on trial in the overbilling scheme that cost taxpayers almost $6 million.

A former Fleishman-Hillard vice president testified Tuesday that she padded the public relations firm's bills to the Los Angeles Department of Water and Power by as much as $50,000 a month. Monique Moret, who is testifying under a promise of immunity from prosecution, told jurors that she acted at the direction of her boss, John Stodder, who told her that the orders came from Douglas Dowie, the Los Angeles office's general manager. Why? Assistant U.S. Atty. Adam Kamenstein asked Moret.